This annual report shows the number and percentage of students retained in grade at the conclusion of the 1988-89 school year in the Los Angeles Unified School District (LAUSD). Statistical data were gathered from a principal's report, a student survey, and earlier reports. The following findings are presented: (1) in June of 1989, 30,413 students were retained; (2) the district retention rate rose from 4.95 percent in June 1988 to 5.09 percent in June 1989, the first increase since 1984; (3) the retention rates for both elementary and junior high school students are markedly lower than for senior high school students; (4) approximately 58 percent of the retainees in June 1989 were male; (5) retention rates for high school students were several times higher than for elementary or junior high school students; (6) the highest retention rate for elementary school students was in grade 1 (3.60 percent); (7) the highest retention rates for senior high school students were in grade 10 (26.39 percent) and grade 9 (24.95 percent); and (8) although the percentage of black students retained dropped from 6.07 percent in 1987 to 5.88 percent in 1989, these students had the highest retention rate of any ethnic/racial group. Statistical data are presented in two graphs. A copy of the LAUSD retention policy and five tables of statistical data are appended. (FMW)